Don't Ignore This Chart!

GE is Doing It Again!


A good way for you to check what has been driving a particular market is to go to the "Market Movers" widget on your dashboard and select the universe that you are interested in.

To the right, I have printed the table showing the top 10 most active stocks in the S&P 500. Running a Relative Rotation Graph for this group can be done by simply clicking the link below the table. This will give you an overview of the most important market movers. That RRG is shown at the top of this article.

One rotation that immediately had my attention was the tail for General Electric (GE). This stock has been trying very hard to break above that $10.50-10.75 barrier since February but has failed every time. In July, there were three attempts, but the stock never did manage to clear that overhead resistance.

The recent break below intermediate support at $10 has triggered an acceleration downward, which is now pushing GE down to the lower boundary of the trading range. Support may now be expected around $9.00.

The RS-Line is sending weak signals as it breaks a slightly up-sloping trend line connecting three lows since April. It is also breaking the horizontal support level coming from lows in May and July. This has caused the tail for GE on the RRG to roll over inside the improving quadrant, without hitting leading, a move that generally points to more (relative) weakness.

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Julius de Kempenaer

Senior Technical Analyst,

Creator, Relative Rotation Graphs

Founder, RRG Research

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RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered trademarks of RRG Research.

Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on in July of 2014. After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers). Learn More
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